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Question: How will the imposition on firms of a fixed charge per annum for the privilege of operating affect:

(a) the price and output set by a monopolist;

(b) the price and output of a competitive industry where all firms are equally efficient;

(d) the price and output of an intra-marginal firm in a competitive industry in which some firms are more efficient than others?

In each case analyse short- and long-run responses.

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